Friday, April 21, 2017

TransCanada Corporation - TRP.t

TransCanada Corporation - TRP.t is principally comprised of natural gas pipelines in Canada, the United States and Mexico. The company is also the general partner of TC PipeLines, LP, a limited partnership that owns interests in U.S. pipelines.

The Keystone pipeline draws on extensive pipelines experience and offers an efficient way to maximize the value of current pipeline assets.

The Globe and Mail reports in its Thursday edition that it is well known that hedge funds routinely fail to beat the benchmark index in the markets they participate in. The Globe's David Berman writes, however, there are individual stocks that outperformed Canada's S&P/TSX composite index last year, including TransCanada. The Calgary-based pipeline and power company has a 10-year return of 123 per cent, or about double the index, and it has beaten the index consistently over the one- three-, five- and 10-year periods. Mr. Berman argues that if professionals find it tough going, retail investors must struggle even more. According to S&P Dow Jones Indices' SPIVA Canada report for 2016, which was released on Wednesday, just 17.3 per cent of active managers investing in domestic equity outperformed the S&P/TSX composite. That is less than one in five. The percentage of outperformers rises to 19.4 per cent over three years and 30 per cent over five years, but then declines sharply to less than 9 per cent over 10 years. The situation is even worse for U.S. equity managers. In other words, the index is hard to beat, raising the question of why any retail investor would own individual stocks.